J.B. Hunt Transport Services (JBHT) is facing cost pressures that could weigh on its financial results for the back half of the year, UBS Securities said.

While headwinds from fuel costs are likely to be temporary, higher driver costs are expected to persist. The company pointed to more than half of its expected $25 million in Q3 driver cost headwinds coming from its Dedicated Contract Services business and the remainder from the intermodal segment, according to the research note Wednesday.

J.B. Hunt expects Q3 earnings to decline 5% to 10% sequentially from Q2 due to the higher costs.

UBS cut its Q3 earnings forecast for the company to $1.80 per share, from $2.16 previously, to reflect expected margin pressure in the Dedicated Contract Services and intermodal segments.

Significant pricing gains and margin expansion, however, are expected to buoy earnings per share growth in 2027, even with a lower base, the investment firm said.

UBS cut its price target for J.B. Hunt Transport Services to $264 from $291, with a neutral rating.

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